Sunday 15 August 2010

PIA Dispatch - Friday, August 13, 2010

Palace bares VFA review

Malacanang today said an ad hoc review panel is going over the Visiting Forces Agreement (VFA) between the Philippines and the United States of America (USA), but added that there were no discussions yet on abrogating the accord.

In a press briefing at the Palace, Presidential Spokesperson Edwin Lacierda said the Presidential Commission on VFA is conducting a review of the agreement even as a joint resolution has been refiled in Congress asking Foreign Affairs Secretary Alberto Romulo to issue a notice of severance of the bilateral agreement to Washington.

Lacierda said then Senator-now President Benigno S. Aquino III, along with Senator Miriam Defensor Santiago, was a signatory to the joint resolution calling for the VFA review, .

“That (VFA) will be studied by the DFA in consultation with the President. We have not made a policy discussion on that. The stand right now of the DFA is that the agreement is open for review,” Lacierda said.

Lacierda also said the President has repeatedly stated during the campaign his commitment to review the VFA.


Palace pushes thru with review of midnight appointments

Malacanang said today that it respects the Supreme courts (SC) statement asking the palace to exercise “judicial courtesy” while it decides on two separate petitions seeking to nullify Executive Order (EO) No. 2, but maintained that the review of the standing of midnight appointees will push thru.

In a regular press briefing on Friday Presidential spokesperson Edwin Lacierda said the manner of reviewing the status of the midnight appointees is ongoing since the SC has yet to issue a temporary restraining order.

Lacierda said there are numerous appointees from the past administration in the entire bureaucracy and the respective cabinet secretaries and all agencies are studying their status.

On Thursday the High tribunal thru SC spokesperson Midas Marquez asked the palace to exercise prudence while it seeks a resolution on two separate petitions filed by Eddie Tamandong of Subic Metropolitan Authority and assistant secretary Jose Arturo De Castro of the Department of justice questioning the legal basis of EO 2.

“He told us to exercise prudence, but at the same time he also confirmed our position that there being no TRO, we can implement and review, we can conduct review of all midnight appointees,” said Lacierda.

He also said that Solicitor General Joel Cadiz is already studying the case and would be defending the palace order after the SC asked executive secretary Paquito Ochoa to reply to the petition.


Palace to abide by SC ruling on VAT toll

Malacanang said it respects the decision of the Supreme Court stopping the government from imposing value added tax on toll rates and increase in toll fees.

“We will respect and the order of the Supreme Court,” Presidential Spokesperson Atty. Edwin Lacierda said in a statement after the SC issued on Friday a temporary restraining order (TRO) against the 12 percent value added tax supposed to be implemented at the North Luzon Expressway and 250 percent increase in the South Luzon Expressway toll fees on Monday.

The government was set to implement Monday the VAT on tollways but the SC acted on the petitions filed by former Nueva Ecija Rep. Renato Diaz and Trade Assistant Secretary Aurora Timbol, who said the toll on roads and highways are excluded from the list of services subject to VAT.

Albay Governor Joey Salceda also filed a supplemental omnibus motion or status quo on the 250 percent increase in tollway fee rates at the South Luzon Expressway.

In a press briefing in Malacanang, Lacierda said the Aquino Government is merely enforcing the law which the Arroyo Administration refused to impose.

He stressed that the law existed in 2005, and that two revenue memorandum circulars were issued by the Bureau of internal Revenue in 2005 and 2009, but the Arroyo Administration failed to enforce their own orders.

Lacierda further said that the funds that were supposed to be collected from the VAT toll will be used to fund the social services program of the Aquino Administration.

But with the SC decision, the Aquino Administration is adopting certain measures to raise funds for government programs without pushing for new tax measures. These include plugging the leakages in the revenue agencies concerned and adopting some cost saving measures.

He added that zero-based budgeting is also being adopted to make sure all the programs are workable and doable.